RE: This medical device tax is just not going to end well
posted at 4:13 pm on November 15, 2012 by Mary Katharine Ham
As Obamacare continues to do exactly what all of us said it was going to do— forcing layoffs, cutbacks on hours, doctor shortages, and slowed innovation—the favorite trope of the Left is just to call any business person who fights to stay above water while Obama’s drowning them big, greedy meanies.
Now one of the biggest device manufacturers, Stryker Corp., has tied plans to slash 5% of its global workforce – in part by shuttering two New York plants – to the tax. Stryker said it will close its West Seneca, New York plant in September, impacting 11 employees, and its Orchard Park, New York facility in December, eliminating 96 jobs there. The firm said it would provide laid-off employees with severance packages, counseling and job placement services. Stryker acquired the plants in 2010 with its purchase of Gaymar Industries, which specialized in support surface and pressure ulcer management products as well as temperature management.
Stryker said last November that it would eliminate 5% of its global workforce as part of an effort to realize $100 million in annual productivity gains to offset the hit when the excise tax takes effect in 2013.
Jon L. Stryker, an investor, architect, philanthropist and $2 million Priorities USA donor, derives his fortune from shares of Stryker Corp., a medical device manufacturer, that he inherited. According to the most recent disclosure filed with the Securities and Exchange Commission, Stryker owns 3.2 million shares of the company outright, and shares control with his siblings of another 15.3 million shares through a trust. Lobbyists for Stryker Corp. have reported spending $435,000 over the past two years lobbying on multiple issues, including bills that would repeal the medical device tax included in the Affordable Care Act, better known as Obamacare.